For the fourth time in six years, cyber risks rank as the number one overall business concern and almost 60% said they think it is inevitable that at some point in the future their company will be the victim of a cyberattack.

• Cyber attackers are becoming more aggressive, harassing businesses with tactics such as double extortion which combines unauthorized transfer of sensitive data and encryption of this data. Criminals may threaten to leak sensitive information if the ransom is not paid.

• Top 5 cyber events experienced by businesses: Security breach, extortion/ransomware, information or systems put at risk by employees, system glitch, or employees fooled into transferring funds into fraudulent accounts.

• In 2024, ransomware claims severity increased 14% to an average of $353,000 fora top cyber carrier, Coalition.

• Businesses with exposed login panels were 3x more likely to experience a claim.

• According to the results of a Travelers survey, not enough companies are taking action to reduce the risk of becoming a victim of cybercrime.

4 Strategies to Mitigate Cyber Exposure

Training Employees: Companies should be giving monthly, weekly, or biweekly training to employees about current cybercrime attacks and methods, such a deepfakes, text-to-speech attacks, or any AI-influenced cybercrimes, so they know what to be aware of.

Cyber Fortification: Regularly looking for vulnerabilities within your organization is crucial. The following recommendations are important areas to keep up-to-date:

• Implement multifactor authentication on all critical accounts and change passwords regularly. Ensure that only authorized users can remotely access your network.

• Use a managed detection and response (MDR) service.

• Maintain credible offline and cloud backups of critical business data.

• Establish a formal and secure procedure for electronic payments.

• Put up firewalls and patch all software and firmware regularly.

• Have a regularly reviewed and updated Incidence Response Plan.

Clarify Procedures: If an employee, for example, receives a phishing email or a request to send a payment elsewhere, you need to have clear procedures in place that the employee knows the steps to follow — what to do and not to do — when incidents like this arise. If you notice something unusual, you should promptly report it to your insurance agent who can notify your cyber insurance carrier. Having timely, transparent, responsive, and open communication between insured, agent, and insurance carrier is essential when managing cyber risks. Don’t wait until it’s too late to contact your agent. This doesn’t mean a formal claim will for sure be filed, but the carrier can asses the risk and situation to determine the severity of the threat and if a claim should be filed.

Know Your Insurer: Cyber Liability insurance is a dynamic and changeable space where not all cyber policies are the same. Having an insurance carrier that does more than just handle claims is ideal. Having certain pre-claim services that allow you as the policyholder to seek counsel and help from the cyber insurer is highly valuable. We can help connect you with a valued cyber insurance carrier.

Source: Overman, Olivia. “Cybersecurity Awareness Month: 4 Ways to Mitigate Cyber Exposure” Big I. Independent Agent. 14 October 2024. https://www.iamagazine.com/markets/cybersecurity-awareness-month-4-ways-to-mitigate-cyber-exposure

Cyber liability insurance can help your business be prepared by providing a combination of coverage options and services to help protect against data breaches and other cyber incidents, as well as steps to recover quickly if an incident occurs. Almost 80% of those surveyed by Travelers said having cyber insurance is critical, yet only 65% have reported buying cyber insurance.

• 52% of small businesses, 18% of midsize businesses, and 17% of large businesses lack cyber insurance.

Costs that a cyber policy can help with include:

• costs associated with notifying affected customers

• costs for recovering compromised data

• costs for repairing damaged computer systems

• lawsuits, and more

Additional coverage to consider: Business Interruption (BI) – It is becoming apparent how critical BI coverages are for safeguarding against the effects of cyber outages, such a financial losses due these business interruptions. A cyber policy that includes Business Interruption coverage will help compensate businesses for lost income and additional expenses incurred due to system outages following a cyber event. It’s a fundamental protection for any organization reliant on digital operations.

There are insurance carriers who offer personal home cyber coverage for individuals and households, as businesses are not the only ones at risk. Individuals and homes fall victim to cyberattacks and regularly. Check with your agent to see if you can obtain personal home cyber coverage as a possible added endorsement to your current homeowners policy.

We are happy to help.

Reach out to us and we can help get you started on a path of actionable security steps and guide you through obtaining Cyber insurance and reviewing what your policy covers and what services are offered.

We Will Strive To: 
Recognize the risks
Review coverage options
Present a Cyber package
Help educate through awareness
 

Contact Doug Fogle | Vice President, Producer

Contact Donna Yost | Commercial Lines Manager & Agent